Political Climate May Shape SEC's Crypto Regulations Ahead of 2024 Elections
Summary:
The upcoming 2024 elections might shape how the U.S. Securities and Exchange Commission (SEC) manages crypto regulations. This sentiment was expressed by Consensys Senior Legal Advisor, Bill Hughes during the recent Consensus event. Hughes noted the changes could impact the SEC's ongoing lawsuit with Consensys regarding Ether (ETH). The SEC has recently moved towards clearer cryptocurrency regulations and approved Ether exchange-traded funds for the first time. The Financial Innovation and Technology for the 21st Century Act, which could define the SEC's authority over digital assets, is up for Senate consideration.
The handling of crypto regulations by the U.S. Securities and Exchange Commission (SEC) could be influenced by the upcoming political climate as the 2024 elections approach, highlights Consensys' senior legal advisor. The ambiguity of how cryptocurrency policy could be affected in the changing U.S. political and regulatory environment was discussed by Bill Hughes, senior legal advisor and director of global regulatory affairs at Consensys, at the recent Consensus gathering in Austin. Hughes commented on the uncertainty over how the SEC's case against Consensys regarding Ether (ETH) might be affected by this shift.
In recent days, the SEC witnessed policy moves towards clarifying cryptocurrency regulations and the approval of Ether exchange-traded funds (ETFs) for the first time. The significant inclusion of digital assets in pre-election actions by presidential candidates of both primary political parties further underscores the ongoing developments.
Hughes spoke with caution on the possible effect of these changes on ongoing SEC probes and their interpretation of securities offerings. He suggested that the approval of Ether ETFs would likely have a positive outcome and was a non-controversial development. The company had earlier taken legal action against the SEC in Texas in April over SEC's alleged intentions of treating ETH as a security.
This lawsuit was initiated prior to the SEC approving Ether ETFs on U.S. exchanges. With this approval, the SEC to a large extent, acknowledged ETH as a commodity. The Consensys lawsuit contained official statements from Gary Gensler, SEC Chair and enforcement division chief Gurbir Grewal, who sanctioned a formal investigation into ETH.
The final impact of changing political dynamics on the SEC's actions and regulations is yet to be seen, noted Hughes. The counsel further alluded to the SEC's potentially reduced antagonistic approach to crypto compared to their historical stance.
The Financial Innovation and Technology for the 21st Century Act or FIT21, will likely be assessed by the U.S. Senate in a year's time after its acceptance in the House of Representatives. This bill could clarify the SEC's authority on digital assets and provide the Commodity Futures Trading Commission a direction to regulate various tokens as commodities.
Chair Gensler has indicated that the SEC will take its time in endorsing the S-1 registration applications of asset managers before they can list and trade Ether ETFs. Predictions by ETF analyst Eric Balchunas suggest these Ether ETFs could be launched in the US by 4th of July.
Published At
6/8/2024 12:19:48 AM
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